Selling a property in Portugal | Tax relief

By Mark Quinn
This article is published on: 17th January 2022

17.01.22

As I covered in my last blog post, capital gains tax is charged on the sale of all property in Portugal irrespective of your residence status, and if the property qualifies as your main residence.

There are two situations in which the capital gain is exempt from Portuguese tax:

If you invest the proceeds of sale into another main home in Portugal, or EU/EEA
If the proceeds of a property sale are reinvested in an approved long term savings plan or pension

Any portion not used to purchase another main home, or reinvested in a savings plan/pension, will be taxed.

Whilst the first exception is relatively straightforward, the second exemption method is slightly more involved and there are certain conditions that must be met, such as (but not limited to):

On the date of transfer of the property the taxpayer, spouse or unmarried partner is in retirement or is at least 65 years old.
The investment into the structure is made within six months from the date of sale.
The property sold is the main home.
Withdrawals from the structure are limited to a maximum of 7.5 % p.a. of the amount invested.
You must declare your intention to invest the funds in such a structure on your tax return in the relevant year.

We can advise on the conditions and structure options in which to hold a qualifying investment.

Investment diversification

By Jozef Spiteri
This article is published on: 12th January 2022

12.01.22

A word which seems so simple, a concept that many think they can easily master, but do you fully appreciate what diversification means? If you check the meaning of diversification, you would find that in business terms it is usually the act of varying the range of products or services offered, or broadening the field of operations. In investment terms it has a similar meaning. Diversification involves spreading your money across different assets and asset categories.

Most of the time when people tell me that they are investing and I ask them if they have Investment diversification, I am met with a resounding “Yes, of course”. They then might go on to explain what they invested in and it is usually things which they would have come across on social media or heard about from another “investor”. These portfolios might comprise shares in a few US companies, a couple of US bonds and possibly some cryptocurrency for a touch of risk. Such a portfolio would seem OK to someone who had just begun investing some spare cash, but is it diversified?

Such a portfolio is not really diversified at all, and I will explain why. Starting off with the first part which is an investment in a few different shares. Firstly, they are all from one geographical region, meaning if something dramatic happened in US stock-markets, they would probably all be affected to some extent. Secondly, inexperienced investors often buy shares based on something they have read online or something they have heard from a friend or colleague. These investments are typically in growth stocks, in other words shares in companies which are perceived to have strong earnings potential and growth prospects, but often with a correspondingly high share price. Investing exclusively in this type of company may prove successful but also carries significant risk, as the expectation of highly profitable growth (sometimes reflected in an inflated share price) may not be realised for many years, if at all. This is why it is sometimes sensible to include more mature company shares in a portfolio, or possibly shares in a company paying good and sustainable dividends.

Moving on to the bond part of the portfolio, often this would be one or two bonds issued by the US government, maturing in say 10 years. It might also include a corporate bond to add a little bit of diversification. But how much attention has been given to the financial strength of the company issuing the bond or the bond’s yield to maturity (how much is received in regular income up to the date the bond matures). These are just a couple of basic questions that should be asked when considering direct investment in a corporate bond.

This brings us to the cryptocurrency portion of the portfolio, often consisting of holdings in popular names such as Bitcoin or Ethereum, or in a new ‘crypto’ trending online. Although I have nothing against a small allocation to cryptocurrency, it should always be treated as speculative with the likelihood of volatility and a high risk of capital loss. I sometimes question whether people investing in cryptocurrency understand the basics of this asset class, including its regulatory status and its ability to function as a currency. To read more about cryptocurrency – click here

One question all investors should be asking about diversification is how to achieve maximum returns with minimum risk. Or, put another way, how to make the most of their money without jeopardising their financial security. A well-diversified portfolio should include exposure to a range of asset classes, for example shares, bonds, property, commodities and cash. Investments should also not be restricted to a single country or geographic region, nor to a single theme or economic sector.

In practice, most people do not have the time or knowledge required to build a well-diversified portfolio which achieves the right balance between risk and reward, between capital growth and capital preservation. At Spectrum, on behalf of our clients, we therefore focus on identifying professional investment managers who specialise in maximising returns from efficient portfolio diversification.

If you have any questions regarding asset diversification and investment returns, our advisers are available to help. We do not charge fees for initial consultations and you have no obligation to use our services after meeting us. Please get in touch to learn more.

I want to sell my property in Portugal | How much tax do I have to pay?

By Mark Quinn
This article is published on: 11th January 2022

11.01.22

Capital gains tax is charged on the sale of all property in Portugal. Whilst this is less of a problem if you have found your dream home and want to spend many years living there, it is a more significant consideration if your intention is to buy a property for the short term or for investment purposes.

If you purchased the property prior to January 1989 there is no tax on the gain realised on sale. In all other instances, 50% of the gain is taxable and inflation relief can also be applied if the property was held for more than 2 years. The gain is then added to your other income for the year and taxed at the scale rates of income tax.

Despite the potential for high rates of tax on sale, there is main residence relief available if you reinvest the proceeds into another main home in Portugal (or the EU/EEA). Certain other conditions apply but in general, the gain will be exempt from taxation if all the proceeds are reinvested. Any portion not used to purchase another main home (or reinvested in a savings plan/ pension) will be taxed.

In recent years a new relief has been introduced which allows reinvestment into a qualifying long term savings plan or pension. This will be looked at next when we discuss downsizing, as this is a very useful relief for those wishing to downsize later in life.

These 2 reliefs can be used in conjunction with each other allowing for greater tax planning opportunities.

Please note, Non Habitual Residence (NHR) status does not have an impact on the taxation of Portuguese property. The tax treatment is the same for NHR and normal residents.

Cryptocurrency versus Regulated Funds

By Jozef Spiteri
This article is published on: 10th January 2022

10.01.22

Patience is a virtue, but in today’s world this is sometimes forgotten as people try to do as much as possible as quickly as possible. This approach is often also applied to investing – trying to get rich quick – but this can result in flawed investments which may result in losing money. An asset class which has been used this way over the past year is cryptocurrency, with its rollercoaster ride making and breaking fortunes.

Still a relatively young asset class, cryptocurrency first gained traction with the Bitcoin boom in 2017 and were again very much in the news in 2021. The value of Bitcoin shot up making those who had held the coin for years very rich. As often happens, the opportunity attracted much attention, leading to the increase in popularity of alternative coins such as Ethereum and Litecoin, and the creation of numerous others.

But what is cryptocurrency? Cryptocurrencies are digital currencies which permit automated transaction recording and record maintenance by a decentralised system, using cryptography, as opposed to using a centralised, regulated authority to keep the accounts. They are based on blockchain technology, which is an important innovation in itself with potential uses in a multitude of applications across all industries. But a key point to remember before you buy cryptocurrencies is that they are currently unregulated by any authority, which means that their value can be manipulated and safety cannot be guaranteed. This is the main reason why most financial advisers rarely recommend this asset class to their clients.

So, what do financial advisers prefer to recommend to clients? International financial advisory firms, such as Spectrum, have access to a wide variety of providers offering regulated funds to create a fully diversified portfolio across a range of asset classes. One such example is Prudential International’s PruFund range of funds, one of the largest and most secure investment portfolios available to expatriates globally – (watch the video explanation here)

An advantage of this well diversified investment is what is termed as its ‘smoothing’ effect. Simply, this means that by being invested in such funds you will not experience the full extent of stock-market highs and lows. The smoothing feature protects investors from the extremes of market volatility, providing investment growth that is smoother and steadier.

The most important requirement for investment success is patience. An investment portfolio should therefore be created with a long-term outlook, prioritising assets that are regulated and in line with your risk profile.
Please contact us to learn more about investing patiently and successfully.

Expat financial advice in Portugal

By Spectrum IFA
This article is published on: 5th January 2022

05.01.22

The Spectrum IFA Group are delighted to announce the official opening of our latest office in Portugal.

The new office is based in Almancil, which is situated in the very south of the country in the heart of an affluent area known as the ‘Golden Triangle’.

It will be run by Mark Quinn, a dual-qualified chartered financial planner and tax adviser. He brings 20 years’ experience advising individuals and businesses in the UK and Europe.

Mark has lived and worked in Portugal since 2014 and it was his interest in joining The Spectrum IFA Group that made it possible to re-open an office in Portugal.

This recent opening follows the establishment of an office in Malta in September 2021, adding to the offices already situated in France, Spain, Italy, Switzerland and Luxembourg.

Mark has over 20 years’ experience in finance and investment and is a dual qualified Tax Adviser and Chartered Financial Planner. Mark is originally from Manchester and moved to Portugal in 2014.

After obtaining a degree in Finance, he started his career in the UK as a researcher and report writer for several accountancy and advisory practices before being promoted to Independent Financial Adviser status in 2005. He has broad experience in advising individuals, companies and trusts in respect of their financial and tax issues.

In today’s world of finance one thing is clear, we all have to pay attention to and take great care of our own finances. Spectrum advisers are here to help you, our clients, with the many complex financial and tax issues you are confronted with: retirement and pension planning including QROPS, Life Assurance, efficient investing (using Insurance wrappers), succession and inheritance tax planning, currency exchange and many more.

As for most expatriates, these planning issues may exist in more than one country, and we believe working with experienced, qualified, cross border advisers who are themselves expatriates, and therefore facing similar challenges, is really important.

Throughout the group want our clients to stay involved and work with us to ensure they continue to prosper. We put an emphasis on continued financial advice and support with some of our clients having worked with their adviser for more than 15 years.

Our commitment to long term business relationships allows us to provide advice and reassurance during the inevitable changes in tax rules, movements in exchange rates and markets.

If you are thinking of moving to Portugal or are an expat currently living there, contact Mark via the form below:

Your Financial Health Check 2022

By Chris Burke
This article is published on: 5th January 2022

05.01.22

New Year Financial Planning Resolutions

First of all, a very Merry Christmas, Happy New Year & Kings Day to all of my clients and readers! Here we are about to start another year; how fast the time passes! Although we have various challenges and uncertainties on our plate currently, the latest COVID-19 variation Omicron and the ongoing Brexit transition to name a couple, I am feeling optimistic about the year ahead.

This time of year is commonly thought of as the natural time to plan ahead. Writing our New Year’s Resolutions allows us to put down in writing what we would like to accomplish over the forthcoming 12 months, and hold ourselves accountable to this. There is a four-benefit cycle of writing New Year’s Resolutions:

Motivation Increases – we will feel motivated and determined from the moment that we set our goals so that we…
Take Control – we internalise that there is nothing stopping us from achieving our goals and that we have the power to ‘make it happen’. Resulting in a…
Sense of Achievement – as we take control and achieve our goals, we will start to feel a sense of achievement, motivating us further…
Self-Esteem/Confidence – as we crush our goals, we will see our self-esteem and confidence skyrocket!

New Year Financial Planning Resolutions - Health Check

But Chris, I hear you say, I don’t know what to include in my New Year’s Resolutions! There are lots of options, whether this is improving your fitness, learning a new skill or improving your financial situation. I specialise in financial advice, so I believe that I can add the most value assisting you with the latter!

A recent Royal London study (Royal London customer research: Feeling the benefit of financial advice, 2020) found that those who take financial advice are on average £47,000 better off over 10 years than those who do not. Furthermore, the study also highlighted that having a financial adviser not only has financial benefits. It suggested that the average person that receives regular financial advice feels more confident and in control, along with experiencing a heightened sense of ‘peace of mind’.

Book a telephone call or zoom chat with Chris now

I am an advocate of the Five Key Financial Planning Principles, also known as the PIPSI. These principles are listed in order of importance, starting with ‘Protection’. If you do not have adequate cover in place, then should something happen, the rest of your plans will not happen, so it is generally agreed that protection is the most important.

P – Protection
I – Income Protection
P – Pension
S – Savings
I – Investment

Protection – do you have adequate life and critical illness cover? Are you paying a fair price for it? Do you have a will to protect your family? Is it up to date?
Income Protection – if something happened resulting in you being unable to work due to accident or illness, are you covered? Would your dependents be financially secure?
Pensions – will your pension plans allow you to retire comfortably? Do you have pensions from previous jobs that could be due for a review? If you have numerous pensions, could it be best to consolidate them to reduce the overall charges and to maximise their effectiveness?
Savings – are you saving money regularly? Are you getting the best interest rate on your savings? Are your savings protected against inflation?
Investments – do your investments match your attitude to risk? Are your current investment charges too high? Do your principles align with your investment choices? For example, are you investing in an ethical manner? Are they on track with your financial life goals?

Have you included improving your finances as a part of your New Year’s Resolutions? Don’t hesitate to get in touch with Chris to talk through your situation and receive expert, factual advice. The initial consultation is free and without any obligation.

Click here to read reviews on Chris and find out more about him and his advice.

A Financial adviser in Italy

By Gareth Horsfall
This article is published on: 2nd January 2022

02.01.22

Being an adult in the financial services business

Immediately prior to joining The Spectrum IFA Group in 2010, I was in my 30th year and wanted to take a bold new direction in life. I was working for HSBC bank in Doncaster, Northern England, at the time, and thankfully the years there were good to me.

However, some things in life seem to change the way you think, permanently. My personal experience of this was during and after my international travels (backpacking ) in 1998/99, visiting S.E. Asia, Australasia and N. America. It was an experience that just wouldn’t leave me. After having grown up in England for the first 24 years of my life, where sunshine is a rare commodity, and then spending a year and a half in sunbaked, tropical and generally sunnier climes, on my return to England I set myself a goal: within 5 years I aimed to move abroad to a sunnier/warmer country.

During those 5 years after returning I had put my time to good use. I had retrained as a fully qualified UK financial adviser, worked on the front line of a bank call centre, worked as a sales agent for an insurance company and was a successful candidate for a financial planning manager role at HSBC bank.

But now, it was about 3 months before my self-imposed 5 year deadline and I still wasn’t anywhere near meeting my objective. Then, by pure luck, by word of mouth through some family connections (sounds very Italian!) I was approached by a local UK IFA firm (also in Doncaster) to be one of their advisers and to open up their first international office in Rome.

I can tell you that I didn’t need much convincing. It would be a commission only role, which was quite frightening as there would not be a fixed regular income. However, my urge to live somewhere warmer overcame everything and I jumped at the chance.

I had never been to Italy before, didn’t speak Italian and had no idea about the culture, quality or standard of life in the country. This was never more evident that in my first month of work in July 2004.

We were expected to dress to work, as we would in the UK, i.e. suit, shirt and tie. However, as anyone who has ever been to Rome in July will know, it is no place for a UK style heavy woollen suit, shirt and tie. In addition, I had to take public transport everywhere because I didn’t have the money to take taxis.

I still remember vividly the time when I was returning from an appointment with a 1km walk to the metro station. I was sweating so much that everyone was giving me a very wide berth. I assume that they just thought I was suffering from a deadly disease. This was my introduction to life in Italy. But I was also now experiencing the sun, beaches, mountains (I started skiing for the first time), countryside and not to forget the food! (I remember saying to my now wife when I first arrived in Italy that food was just fuel for me. That attitude soon changed when she served me my first mozzarella di bufala and introduced me to her family, who mainly originate from Southern Italy).

I lived the next 5 years in a kind of expat bubble, never making an attempt to learn the language and just focusing on my work with the same company, but at the same time becoming more disillusioned with what I saw as the future of the business and their ideas.

During those first 5 years I also split with my long term partner in the UK whom I owned a home with; never an easy thing to do. But, I also met my wife (Italian, but educated in the UK), got married in Ravello on the Amalfi coast and we tried to start a family.

Unfortunately, starting a family was not as easy as we would have liked. After a few years of trying we were told that the only route would be IVF and our hearts sank! It was a heart wrenching journey, but in the end we were lucky enough to be successful after only the second attempt (further attempts never brought more children our way) and we were blessed with a baby son.

However, as is often the case with IVF children, he was premature. Our son was born a month early, severely underweight and with serious health concerns. The next few months were some of the hardest of my life, not helped by the fact that my failure to learn the language was now coming back to haunt me. During a time when your child is at the most vulnerable point in their life, you would hope that as a parent you could communicate and understand the doctors. In my case I couldn’t and had to rely on family members to translate for me. This led to me swearing that I would never be in this situation again in Italy. The following 2 years were an eternal wall of worry, but thankfully he came through. We, my wife and I, were left with some collateral damage, but my son is now healthy and a great child. I am very proud of him.

I am not sure why, but during those 2 years, I also decided to jump ship to another company, and after 1 year with a firm which was destined to failure from the start, I ended up meeting Michael Lodhi, CEO of The Spectrum IFA Group, with a view to taking on a position in either Barcelona or Amsterdam, and travelling from Italy a few times a week.

The conversation (abbreviated here), over a meal and wine, went something like this :

ML> “Gareth, tell me about your work in Italy.”

G> “There is no infrastructure for foreigners living here, unlike France and Spain, no serious tax or financial planning service, people are looking for professionals but can’t find anyone. I think there is a business here but it will take a few years to build.”

ML> “Hmmmm…it seems like you know the market here in Italy. Why don’t you open, build and manage our first move into the Italian market?”

G> “Well that’s what I was really wanting – deal!”

And so that was my start with The Spectrum IFA Group. I now had an idea of what I wanted to build and how I wanted to do it and I had the support to do it the way I knew it should be done.

During that period, and much before, the English speaking community in Italy were mainly being contacted by cold call by firms that would trip in and out of the country to pick up a client here and there, but there was no permanent and serious presence. I had done cold calling myself in the past but I hated it as an approach to prospective clients. It is called COLD calling for a reason. So I decided to take a closer look at the stats behind it. I found (not surprisingly) that the success rate from cold calls to taking on a new client was about 1%, if you were good!

It wasn’t long after when someone challenged me about how I was going to build the business in Italy if I wasn’t going to cold call. I turned the question around and asked: if cold calling brings, let’s say, a 5% success rate and you focus on this as your main way to contact clients, what exactly do you do with the other 95% who refuse the call? I explained that this was where I would be focusing my energies, and I did.

I estimate it took me 2-3 years of holding conferences around Italy, meet-ups with anyone of interest, writing numerous articles for magazines and websites and continuing my own E-zine newsletter, doing drop in financial planning clinics, speaking with numerous commercialisti and lawyers and spending hours in the car covering 100,000s km. All the time making the commitment that unless I was doing a 2 or 3 day event then I would return home to my wife and son at the end of every day, no matter what time I got home.

I didn’t think much about it at the time, but when I look back, I realise just how much I achieved in a short space of time and boy oh boy I learned some lessons in the meantime. I often say to people who contact me with a view to moving to Italy, “you don’t need to worry about making loads of mistakes because I have made them all for you, and paid the price already. If you follow the necessary steps I have laid out, your chances of running into trouble with the tax authorities are very small indeed”. I paid dearly for not taking the right advice in my first years of incorporation in Italy, and not understanding clearly what professionals had told me.

But, after the personal and work struggles of those years, things started to get easier. My name was now being passed on to friends and family members, my online content was, and still is, being discovered and my commitment to staying away from cold calling and building a strong online presence started reaping rewards. I had finally built the foundations of the business that I had always wanted.

The following years are much like anyone else’s, I imagine, as we advance through our 30s and into our 40s. The aches after the gym visits take a little longer to go away and the now infrequent evenings out on the wine take days of detox to recover from. But the life lessons, places I have seen, people I have met, knowledge of my business and life experiences seem to, in a beautiful way, replace all those things that you can no longer do. It feels like there is a natural cycle of renewal and replacement taking place.

My life is now more Italian than I ever would have imagined. After years of making no effort to learn the language, the birth of my son and the experience with the doctors gave me the impetus to ‘get my finger out’ (as we say in Yorkshire) and learn it. Whilst I am far from fluent I can live a comfortable and enjoyable life in Italy now, and learning the language made a huge difference with building relationships and friendships.

And it goes without saying that I no longer consider ‘food as fuel’. After finding out that my wife is a terrible cook, I took on the role of cook in the house. I learnt from my Italian family and found out that I am not as bad as I had thought.

Finally, one more point is worthy of note here: the UK’s decision to leave the EU. This created a bit of an existential crisis for me. It brought into question where my heart now belonged. I had never intended to, nor ever would turn my back on the country of my birth, but the subsequent years of campaigning to protect UK citizens’ rights in Italy and the UK’s hard-line stance on exit convinced me to apply for Italian citizenship. It was awarded in 2019. I am glad I have it.

Every time I look at my passport I realise just how much I am now connected to this ‘Bel Paese’, my business and my clients who are as fortunate to also live this amazing life as I am.

Do I need a financial adviser?

By Jozef Spiteri
This article is published on: 30th December 2021

30.12.21

What exactly does a financial adviser do?

Do you have a good idea of what a financial adviser does? Some people think we are accountants, others think we are regular bankers or even stockbrokers. Well, I can start by saying that we are none of the above and here I will briefly outline what we actually do.

A financial adviser is quite simply a professional guide and planner for your finances. We take a broad view of your personal and financial circumstances, looking at your current position together with immediate and longer-term needs and goals. During an initial consultation, we try to get to know you, to understand your priorities and plans.

Once we have a clear idea of your intentions, we then move on to examine your existing finances, including assets, liabilities, income, expenditure and how much money should be held in reserve for unforeseen expenses. Protection planning will also be addressed – do you have sufficient life insurance to protect your family and is your income safeguarded against serious injury or illness?

We then consider how much should be set aside for long-term investment and retirement, whilst exploring the most suitable solutions for your circumstances. As part of this exercise we complete a questionnaire which helps determine your investment objectives and attitude to risk, allowing us to propose an appropriate investment strategy. This might focus on capital growth, wealth preservation, generating a regular income, or a combination of all three.

The final step is implementing the financial plan by completing application paperwork and arranging transfer of funds to the institution(s) responsible for managing your investments.
Beyond this initial advice we arrange regular updates and review meetings, providing ongoing service to ensure that our original recommendations are always aligned with, or where appropriate adapted to, changes in your circumstances.

This is a short summary of our advice process. Quite straightforward, right?

We believe in building long-term client relationships and have been doing so since our business was established in 2003. An initial meeting with a Spectrum adviser is free of charge and without obligation. Please get in touch to learn more about what we do and how we can help you.

Tax efficient savings in Portugal

By Mark Quinn
This article is published on: 22nd December 2021

22.12.21

If you have arrived in Portugal from the UK there is a hope, or perhaps expectation, that there will be savings options similar to an ISA and other tax efficient investments.

Portugal does not have an ISA system but there is a similar investment, sometimes referred to as the “tax efficient, Portuguese compliant bond”. It is tax free whilst invested and has a very beneficial low taxation basis, especially if you require income from your investment.

The two big advantages with this structure are that there is no limit to the amount you can invest and it is portable to most other countries if you decided to move in the future.

There are many investment and currency options, so it is a simple and effective way of building a Portuguese compliant tax efficient savings structure to meet your personal objectives and needs.

Even if you have moved to Portugal to just take advantage of NHR (Non Habitual Residence status), and wish to return to your home country in the future, these structures can provide an incredible planning opportunity.

For example, if you return to the UK and the appropriate restructuring advice was to surrender the investment, the tax due on surrender would be proportional to the amount of time you have been in the UK. So, if you were non-UK resident for the whole period of ownership, then no tax is payable. If you were non-UK resident for 8 out of 10 years of ownership, the tax will only be calculated on the 2 year period of UK residence meaning you would benefit from an 80% tax saving!

For more information on the tax efficient, Portuguese compliant bonds, please contact us.

Interest rates and Inflation

By Jozef Spiteri
This article is published on: 19th December 2021

19.12.21

Taking simple steps to increase and protect your wealth

Interest rates and inflation, both terms we are familiar with, whilst not always appreciating how closely the two are connected, or that both affect our immediate and longer term financial security.

When we hear about interest rates, we might think of the bank. This is correct, but let’s clearly define what the term interest rate means. For savers (as opposed to borrowers) an interest rate can be seen as a percentage-based payment which the bank (or indeed any other savings institution) pays us for holding our cash. This means that when we put our money in a bank account, the bank compensates us financially for having placed our funds with the bank. Simple, right? Inflation can be a slightly more difficult concept to understand, but it is something we experience daily. Inflation refers to the general increase in prices of goods and services over time. This happens for a number of reasons, which won’t be examined here. The important point to understand is that inflation, whether gradual or accelerating, means prices are going up.

How then are interest rates and inflation linked? Well, the connection is quite straightforward. As mentioned, the bank is paying its savings customers an interest rate, so let’s consider the actual value of that interest rate. Most likely the rate you have been receiving over recent years has been no higher than 0.5% per annum. But inflation has been averaging around 2% per annum and has increased substantially over the past year or so. What does this mean? Assuming interest at 0.5% and inflation at 2%, the money in your bank account is losing 1.5% of its value every year (2% – 0.5% = 1.5%). This means that by keeping funds idle in a bank account you are actually destroying the real value of your money. The longer the cash is left there, the more value it loses.

Now that you’ve read the above, you may be asking yourself if there is a way to avoid destroying the real value of your money. That is where companies such as Spectrum can help. After reviewing your circumstances and going through a risk profiling exercise, your Spectrum adviser can help you build a suitable portfolio of diversified assets with the aim of getting your money working harder. A typical ‘balanced-risk’ portfolio, for example, has achieved annualised returns of 4% to 6% over the medium to long term. Of course past performance is no guarantee of future returns but with sensible planning it is entirely possible to overcome the negative effects of inflation – indeed, investment success and achieving positive real returns generally rely on such planning.

An initial meeting with a Spectrum adviser is free of charge and without obligation. This means we can assess your circumstances and answer your questions. It is up to you to decide whether to take things further. We would be more than happy to meet you for a chat so we can show you how we can be of service.